How Scammers Exploit Real Estate Open Houses

23 October 2025

Open houses are a great way for buyers to check out properties firsthand. They’re also an excellent opportunity for sellers and real estate agents to showcase a home in its best light. But while open houses can be beneficial for genuine buyers, they also attract a less desirable crowd—scammers.

Real estate scams are evolving, and open houses have become a prime hunting ground for fraudsters looking to take advantage of unsuspecting homeowners, agents, and even potential buyers. But how exactly do they do it? And more importantly, how can you protect yourself?

Let’s break down the sneaky tactics scammers use and what you can do to avoid falling into their trap.

1. Identity Theft Through Open Houses

Open houses may seem harmless, but they offer scammers the perfect opportunity to steal personal information. Here’s how they do it:

- Snooping Through Documents: While touring the home, some scammers discreetly look through documents left out in the open. Utility bills, bank statements, or even mail lying around can provide enough information to commit identity theft.
- Snapping Photos of Personal Information: A scammer might pretend to be a serious buyer while secretly taking pictures of anything that contains sensitive data.
- Hacking Smart Home Devices: Some tech-savvy scammers might access smart home systems, gaining control of security cameras, garage doors, or even alarm systems to exploit later.

How to Prevent It

- Remove all personal documents before an open house.
- Lock away mail, bank statements, or personal paperwork.
- Disable smart home access for visitors and ensure passwords are secure.

2. Fake Buyers With Malicious Intent

Not everyone walking through an open house is genuinely interested in purchasing the home. Some scammers pose as potential buyers with hidden agendas.

- Casing the Home for Future Burglary: A criminal might attend an open house to inspect security weaknesses, noting entrances, alarm systems, and valuables.
- Testing Security Responses: Some scammers deliberately set off alarms or test door locks to see how quickly security responds, gathering intel for a future break-in.
- Distracting the Agent: A common trick is working in pairs—one person distracts the real estate agent with excessive questions while the other snoops around the house, looking for valuables or entry points.

How to Prevent It

- Require sign-ins with identification to deter fraudsters.
- Limit the number of people touring at once.
- Have multiple agents or a trusted individual present to monitor guests.

3. Fake Listings and Fraudulent Transactions

Scammers don’t just exploit open houses in person—some take things online, using real photos from legitimate listings to create fake ads. Here’s how it happens:

- Scamming Renters and Buyers: A scammer might lift photos from an open house listing and repost them as a rental or for-sale-by-owner deal. They’ll ask for a deposit or down payment upfront, then disappear with the money.
- Impersonating the Seller: Some fraudsters go as far as posing as the homeowner, trying to sell the house to an unsuspecting buyer while pocketing the payment.
- Forging Documents: In some cases, scammers fabricate ownership documents, tricking buyers into signing fraudulent deals.

How to Prevent It

- Regularly check online platforms for unauthorized listings of your property.
- Never send money without verifying ownership through official channels.
- Always deal with licensed professionals and verify documents before making payments.

4. Homeowner Deception - Fraudulent Buyers

Homeowners desperate to sell quickly can fall victim to fake buyers with deceitful intentions. These con artists make grand promises but never follow through, leaving the seller frustrated and their home off the market.

- Bogus Offers with No Intent to Buy: Some scammers pose as buyers, making attractive offers only to back out last-minute, wasting valuable time.
- Overpayment Scams: A scammer might offer to buy a home at an inflated price, then "accidentally" overpay and request a refund—only for the initial payment to bounce.
- Financial Fraud: Some fraudsters provide fake bank statements, pre-approval letters, or false proof of funds to appear legitimate.

How to Prevent It

- Demand verifiable proof of funds before accepting an offer.
- Work with a professional real estate agent who can spot red flags.
- Never refund overpayments until the original payment clears.

5. Agent Impersonation Scams

Even real estate agents aren’t safe from scammers. Some fraudsters pose as real estate professionals to dupe buyers and sellers.

- Fake Agents Running Open Houses: A scammer might falsely claim to represent a property and run an open house, collecting deposits or personal information from unsuspecting buyers.
- Stealing Commissions: Some fraudsters might hijack legitimate listings, pretending to be the seller’s agent and collecting deposits or commission fees before vanishing.
- Forged Credentials: A scammer may create a fake website or social media profile to appear as a credible real estate agent, tricking clients into hiring them.

How to Prevent It

- Verify agent credentials through official real estate boards.
- Never send deposits without confirming ownership and agency representation.
- Be cautious of deals that seem too good to be true.

6. Wire Fraud in Real Estate Transactions

One of the most financially devastating scams in real estate is wire fraud. It usually takes place after an open house when a buyer gets serious about making an offer.

- Hacking Into Email Communications: Scammers intercept emails between buyers, sellers, and agents, then send fraudulent wire instructions for down payments.
- Fake “Urgent” Requests: A scammer might impersonate a real estate agent or escrow officer, claiming there is a last-minute issue that requires immediate wire transfer of funds.

How to Prevent It

- Always verify wire transfer instructions over the phone with a trusted contact.
- Be wary of any last-minute changes to payment details.
- Use encrypted communication for financial transactions.

How to Stay Safe During Open Houses

The key to preventing real estate scams is awareness. Here’s how homeowners, agents, and buyers can protect themselves during open houses:

For Homeowners

- Store away valuables, mail, and personal documents.
- Use security cameras to monitor activity during open houses.
- Work with a trusted real estate agent who understands scam prevention.

For Real Estate Agents

- Require identification for open house visitors.
- Never leave guests unattended in the home.
- Educate clients about common real estate scams.

For Buyers

- Be cautious of deals that seem too good to be true.
- Verify the identity of the seller and the real estate agent.
- Never send money or documents without confirming authenticity.

Final Thoughts

Open houses should be an exciting part of the home-buying process, but they can also be a playground for scammers. Whether you’re a homeowner, an agent, or a potential buyer, staying vigilant is crucial. By understanding how scammers operate and taking the right precautions, you can avoid falling victim to real estate fraud.

So, the next time you attend or host an open house, keep your guard up—because in the world of real estate, not everyone is who they claim to be.